When Money Flows Upstream: Payment for Watershed Services in Guatemala.

Transcription

1 WWF Central America and Defensores de la Naturaleza When Money Flows Upstream: Payment for Watershed Services in Guatemala. Swiss Re Conference 29th-30th of October 2003 Rüschlikon Center: Beyond Carbon emerging markets for ecosystem services

2 WWF Global and Freshwater Conservation Priorities in Central America

3 SIERRA DE LAS MINAS BIOSPHERE RESERVE & Landscape scale conservation 240,000 Hectares (largest continuous cloud forest block in CA) Sea level to > 3,000 meters 70% of all birds, mammals, reptiles in Guatemala 63 permanent rivers important national water reservoir Driest region in Central America (500mm) Threats mitigation to the Mesoamerican Reef

4 The Challenge: Addressing Threats and Roots Causes to unsustainable freshwater resource use and biodiversity loss Inadequate land use changes (forest fires, overgrazing and illegal logging). Point and non-point source pollution. Ecosystem alteration (canal dredging, introduction of exotic species, hydro-electric plant construction). Opportunity costs for forest owners are high & policy incentives are lacking. Users de not pay for environmental services provided by the Sierra de las Minas cloud forest and core zone.

5 IMPORTANCE: WATER SOURCE Water from the Reserve is used for: Domestic Consumption Irrigation & agro-export industry Industry (bottling, paper & hydropower companies)

6 The Project Concept CREATING FINANCIAL LINK Basic Research: Supply (How much is there?) Demand (How much is used?) Water Valuation (How much is the water worth?) Fund Design (How will we receive and channel resources?) Community and User Involvement (environmental awareness raising for project buy-in) WATERSHED MANAGEMENT & CLEANER PRODUCTION Protected Area Management (protection and biodiversity loss threat abatement) Forest Landscape Restoration, Reforestation & Natural Regeneration Forest owner compensation program Integrated River Basin Mgt, Governance & greater water use efficiency

7 The Strategy START WITH MORE WILLING AND FINANCIALLY ABLE WATER USERS & IMPLEMENT CLEANER PRODUCTION. Cleaner Production $ Production Costs INDUSTRY Production cost savings to Water Fund Abasa (Coca-Cola) Cabcorp (Rio Beer) Lizasa (Zacapeña Rum) Hydro-electric plants Painsa (paper manufacturers)

8 Component Progress to Date Water Fund Design WATER FUND BOARD OF DIRECTORS ASSOCIATION OF INDUSTRIES ASSOCIATION OF HYDRO-ELECTRIC PLANTS MOTAGUA TOWN HALL GROUPING ACADEMIC/SCIENTIFIC COMMUNITY SIERRA DE LAS MINAS BIOSPHERE RESERVE EXECUTIVE SECRETARY POLOCHIC TOWN HALL GROUPING IRRIGATION SYSTEMS ASSOCIATION Advisory Committee

9 Hydrological Data Gathering & Analysis - Data Gap Analysis - Soil and Water Assessment Tool - Cartographic development

10 Water Valuation Studies Watershed Pasabien Lato Colorado User group Industry (bottling industries) Domestic consumers Irrigation units Methodology -Subsidiary markets -Production costs -Benefits maximization -Contingency Evaluation ( Willingness to Pay ) -Cost-Benefit Analysis (agricultural production and protection costs) Preliminary Water cost findings US$ 200,000 1,000,000/year (based on total water consumption volumes) US$ /m 3 /year (inkind contributions) TBD

11 Local Constituency Building Selection and initial contact with industries Corporate information gathering and research Formal agreement with the Guatemalan Chamber of Industry (GCI) and Clean Production Center EPS & Clean Production training program EPS peer visit to Costa Rica Incentives Program for Industry Corporate Breakfast at the GCI

12 Communications and Fundraising - Central American Journalist Training Workshop - Matching Funds - Project communications material & improved profile

13 Take Home Messages and Challenges Industry recognizes water as strategic however still considers it an openaccess resource. Industry is more interested in Cleaner Production than in PES and upper watershed conservation. Conservation is still seen as a Public Relations activity rather than a risk mitigation investment. Insufficient available hydrological data sources and limited information sharing on the part of industry for water valuation studies. Local communities concerned about water privatization. Adequate water management norms and policies are lacking in Guatemala.